Savills

DEMAND FOR A-RATED OFFICES UP 50% IN TEN YEARS

Savills survey: sustainable offices not trend, but norm

Sustainable offices are no longer a passing trend but the new norm, a survey conducted by real estate consultancy Savills reveals. According to its analysis, demand for office spaces rated with energy labels of ‘A’ or higher has doubled in the past ten years, from 24 per cent in 2011 to 53 per cent in 2021. On top of that, more and more companies and organizations are prepared to pay more for sustainable premises. Where greening office real estate is concerned, Rotterdam faces the greatest challenge of all four major Dutch cities. We talked to Savills Research Consultant Scato de Smit, Associate Director of Property Management Thom Kepel, and ESG Consultant Iris Kampers.

DEMAND FOR SUSTAINABLE OFFICES HAS SKY-ROCKETED

For the survey, Research Consultant Scato de Smit analysed sustainability developments in the Dutch office property market. The numbers speak for themselves, he says. Demand for offices with at least an ‘A’ rating has doubled in the past ten years in the Netherlands. “That demand for sustainable offices has sky-rocketed. We do see big differences between markets though. Rotterdam was bombed during the Second World War and consequently its office stock is very different to that in places like central Amsterdam. The city was redeveloped at a furious pace between 1945 and 1970, and that left it with office buildings that are not always of the best quality. Eight per cent of office buildings in RCD don’t satisfy the requirements for a ‘C’ rating. While that sounds low, it’s two per cent in Zuidas, one per cent in The Hague’s Beatrixkwartier and zero in Utrecht CBD. RCD thus faces the greatest sustainability challenge of all, in comparison to other CBD’s in the G4” Associate Director of Property Management Thom Kepel adds that, “There have been investments in this through transformations and refurbishments in the past ten years, but the percentage is certainly high compared to other CBD’s in the G4. Bringing existing building stock in RCD up to a ‘C’ rating at least will be a tremendous challenge for the district.”

HAPPY TO PAY MORE FOR GREENER OFFICES

Sustainability is becoming an increasing priority across the board, and more and more companies and organizations are prepared to pay more for sustainable premises (which the survey defines as an ‘A’ rating or higher). Scato explains, “This is something RCD is going to have to factor in, as an analysis of 12,000 user transactions in the Netherlands from 2011 to the present shows that companies want to pay higher leases for low-impact offices. That’s significant proof that greening offices pays. Not only that, property investors who choose not to invest are penalized. Our analysis shows tenants are less willing overall to pay for non-sustainable offices rated ‘B’ or lower”.

FIRST

In RCD, Savills manages the First building (which has the Energy A label and BREEAM Excellent certificate) on Weena, among others. Thom: “First has big tenants that are committed to sustainability, so this raises the bar even higher for this property. Sustainable features here include thermal energy storage, a green rooftop with solar panels, rainwater that is captured for flushing toilets, and a smart building management system gathering a lot of data that is used to operate the building as energy efficient as possible.”

TENANTS’ ROLE

Savills assists tenants to find sustainable office premises and owners to set out the best strategies to attain their sustainability targets. ESG Consultant Iris Kampers: “Not only at building level, but whole investment portfolios. We work together to get buildings in those portfolios Paris Proof by 2050 and to ensure new acquisitions align with that philosophy.” According to Iris, tenants can play an instrumental role. “When owners invest in greening a building, it’s every bit as important that tenants do their part to achieve sustainability targets. We can help by putting that down in black and white or thinking about how to communicate with and educate tenants about sustainable use.”

PRACTISE WHAT YOU PREACH

With an MSc degree in ecology and natural resource management from Utrecht University, Iris joined Savills in October 2021. “I want to use my background to make the right impact. How can we utilize natural resources in a way that is future-proof and ensure generations to come enjoy the same standard of living that we do? I see that same passion and sense of responsibility throughout Savills. Everyone is motivated to not only talk the talk but walk the walk. We practise what we preach.”

Want more insights from the Savills survey? Iris, Scato and Thom would be happy to tell you more! Get in touch on +31 (0) 20 301 20 00. www.savills.nl